Bitcoin Always Bounces After This

**Nick Valdez** (0:00)
Bitcoin just saw a sharp drop in mining difficulty, one of the largest of all time. We saw this back in 2021 when China banned mining. But did you know Bitcoin more than doubled in price shortly after? And that was the local bottom. Today, we're digging into the data and let's see what happened to Bitcoin's price after these massive difficulty adjustments in Bitcoin mining. Could we be setting up a strong rebound like we've seen every single time? And before we jump into the numbers, the way Bitcoin mining works is every time a miner goes online to mine Bitcoin, it gets more difficult. And every time a large mining operation goes offline, the difficulty lowers.
And what we just saw was one of the largest drops in difficulty in Bitcoin's history. You can see it is highlighted up here. This was the 11th largest drop ever, and we're going all the way back to when Bitcoin first arrived. Now, all these other incidents do lead to pumps, but the question is how quickly does it pump and how much does it pump? So we're going to start at the top of July 3rd, 2021 with the China mining ban. Now, July 3rd, 2021 is right here, and we did get a small, about 13% drop immediately. But then two months later, we would have a 50% pump. You can see that 66 days, 67 days. Four months later, we would have a 2X in Bitcoin's price. And we're going to look at these difficulty adjustments and find out the average pump with the average time it takes to hit a 50% pump and a 2X pump. Now, we're only going to do the ones that are most important and the ones that are most relevant, and I'm only going to do one for each year. I'm not going to do 2011 because Bitcoin was literally $3 back then, but we will do the first having. Now, for 2020, we're going to do March 26, the COVID Black Thursday crash. Now, March 26 is going to be after miners capitulated after that March 3rd low, and you can see this actually pretty much was the bottom here, and we're going to go and look two months later, not even really, about a month and a half, you did get a nice 50% pump. Five months later is how long it would take to essentially hit a 2X. The next one we're going to do, I think is pretty relevant to where we're at today. That's going to be the December 3rd, 2018, the 2018 bear market miner capitulation. Now Bitcoin initially would get about a 20% drop over the next couple of weeks. But if you fast forward a couple months, five months actually, you would see that 2X. Watch this, 152 days, 163 days, you would get your 2X. So basically 11, 10, 11 days later, Bitcoin would double. And this is going to be the only old one I'm going to do. And that's the one from 2012 And I think it's important, that is the first having. This is where we got a major, minor drop off. All right, this one's actually on Christmas Day 2012 There would be no drop. You can see that was the bottom. About a month later, you are up 50%.
Less than two months later, you are up 2X, 104% pump in 50 days.
So we now have all our data. On average, you do get a 50% pump after about 2.5 months. And after 4.1 months, you get a double in price.
So 2.5 months from now, you are looking at about roughly the end of August. And a 50% pump would put Bitcoin right at 100K. And 4.1 months later, you are looking at October 20th of the same year, and you are looking at roughly $135,000 Bitcoin. Now, if I were to bet on one of those, I don't know if Bitcoin is going to be able to 2X in that short amount of time, but I would not be surprised to see Bitcoin reclaimed 100K over the next few months. I'm Deezy for Discover Crypto. And if you like this data driven video, please smash that like button. I'll see you in your Bitcoin bags at the top.